As ad insights firm MediaRadar sees it, optimism abounds for 2024 … so long as “nimble media companies” are actively working to capture the marketer budgets that have been cemented for this year.
Yes, ad budgets tightened recently. However, MediaRadar predicts, accelerated ad spend is coming. That’s why “media leaders should focus on openings, not hurdles.”
With economic headwinds that can emerge at a moment’s notice, MediaRadar recommends that a close monitoring of market signals be undertaken, which can position the pivot when necessary.
And, MediaRadar provided some trends that media companies can’t ignore, along with insights to help capitalize on a potential increase in ad revenue associated with each.
In December, MediaRadar observed a “promising” 10% year-over-year increase in ad sales, though active advertisers still lag 13%. This was likely due to both precautionary pullbacks and mounting bankruptcies. Last year saw bankruptcy filings surge over 18% — the highest since 2009. “Despite challenges, we expect things to continue to open in 2024,” MediaRadar notes. “However, the rebound will not be even, so sales leaders must monitor segments closely.”
Categories like Electronics, Financial Services, Housewares, Pharma, Sports, and Software stand out as pockets of growth.
Meanwhile, political advertising spend “is primed to reach unprecedented heights” across this year. Furthermore, streaming ad loads will continue to rise.
The biggest takeaway for broadcast media leaders: Local advertising suffered in 2023, but it will recover in 2024.
Local ad spend was down 11% year-over-year, dropped to just 16% of all media spend.
